Terminology- Face Value

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We will now have a list of TERMINOLOGY used in the Equity Market in a series of blog posts.

FACE VALUE

The nominal value of a share is known as its Face Value. The equity capital of the company is calculated by multiplying the number of shares issued by its face value. For example, in case a company has issued 10 lakhs shares with Face value of Rs. 10, then the equity capital of the company would be Rs. 100 Lakhs (Rs. 10 * Rs. 10 Lakhs). The face value of the company’s shares usually does not change unless the company decides to split or consolidate its shares.

The face value of the company’s shares usually does not change unless the company decides to split or consolidate its shares.

The Face Value of a share is important for calculating the dividend payable on a share.

In the next post, we will see what does BOOK VALUE mean.

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